Consultation on reforming the heavy goods vehicle levy

The government is publishing a consultation on reforming the heavy goods vehicle (HGV) levy, which has been suspended since 1 August 2020 to support the haulage sector and aid pandemic recovery efforts.

The consultation seeks industry views on two ways in which the levy could be reformed when the suspension ends as planned on 31 July 2023.

Firstly, the government is considering reforming the HGV levy so that it is more reflective of the environmental performance of the vehicle. The levy would be restructured to be based on the weight of the vehicle, as an indicative proxy for carbon dioxide emissions.

If this reform were carried out, the majority of UK vehicles will pay less or the same than they did before the previous levy was suspended. The alternative would be to continue with the current structure and rates.

Secondly, the government is minded to reform the levy liability for foreign HGVs, such that they pay only when driving on major roads. This is to clarify that the levy design is unambiguously in line with the government’s international obligations.

The consultation will be published on the Department for Transport website and will run for four weeks.